Normal and Overtime Policy Page 1 of 13

NORMAL AND OVERTIME HOURS POLICY

1. Definitions:

“earnings” means gross pay before deduction i.e. income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee.[1]

“ordinary hours of work” means the hours of work permitted in terms of clause 2.

“overtime” means the time that an employee works during a day or a week in excess of ordinary hours of work.

2. Ordinary Hours of Work

No employee may be permitted to work more than---

(a) 45 hours in any week; and

(b) nine hours in any day if the employee works for five days or fewer in a week; or

(c) eight hours in any day if the employee works more than five days in a week.

3. Overtime[2]

An employee may not be allowed or permitted to work –

(a) overtime except in accordance with an agreement;(the agreement must conclude when the employee commences employment or during the first three months. The agreement must be renewed after one year[3])

(b) more than ten hours overtime a week.

Provided that an agreement may not require or permit an employee to work more than 12 hours on any day.

4. Calculation of remuneration and wages[4]

4.1 For the purpose of calculating the wage of an employee by time, an employee is deemed ordinarily to work—

(a) 45 hours in a week, unless the employee ordinarily works a lesser number of hours in a week;

(b) nine hours in a day, or seven and a half hours in the case of an employee who works for more than five days a week, or the number of hours that an employee works in a day in terms of an agreement concluded, unless the employee ordinarily works a lesser number of hours in a day.

4.2 An employee’s monthly remuneration or wage is four and one-third times the employee’s weekly remuneration or wage, respectively.[5]

5. Remuneration for overtime worked[6]

No employee will be remunerated for overtime worked, unless such overtime has been authorised by his or her section head, or is required in terms of a roster.

An employee will be paid-

¨  paid one and one-half times the employee’s wage for overtime worked; or

¨  paid not less than the employee’s ordinary wage for overtime worked and be granted at least 30 minutes’ time off on full pay for every hour of overtime worked; or

¨  granted at least 90 minutes’ paid time off for each hour of overtime worked.

6. Calculation of Overtime Remuneration

The employees hourly rate plus the overtime rate of pay equals the overtime remuneration.

7. Exemptions

Managers, sub-managers, senior managerial and administrative personnel, technical and professional personnel if the said employees are in receipt of a regular annual earning in excess of R115 572.00 per annum.[7]

Aside from the exemption from overtime remuneration, employees who are in receipt of a regular annual earning in excess of R115 572.00 per annum (or any amount regulated by Government Gazette from time to time regarding the Earnings Threshold) are further exempt from the following provisions of the Basic Conditions of Employment Act, no 75 of 1997.[8]

Section of the Basic Conditions of Employment Act / Topic
Sections 9 / Ordinary Hours of Work
Sections 10 / Overtime
Sections 11 / Compressed Working Week
Sections 12 / Averaging Hours of Work
Sections 13 / Determination of Hours of Work by Minister
Sections 14 / Meal Intervals
Sections 15 / Daily and Weekly rest periods
Sections 16 / Pay for work on Sundays
Sections 17 / Night Work
Sections 18(3) / Public Holidays

Agreement entered into between

…………………………………… ("the employer / company")

and

…………………………………… ("the employees")

……………………………………

……………………………………

……………………………………

……………………………………

NOW WHEREAS the Basic Conditions of Employment Act 75 of 1997 ("the Act") specifies certain terms and conditions of employment which require to be agreed between an employer and his employees, the parties have entered into an agreement in respect of the following:-

1. Work On Public Holidays (section 18)

1.1 An employer may not require an employee to work on a public holiday except in accordance with an agreement. (section 18(1)).

1.2 Due to the business and operational requirements of the Company, employees will be required to work on Public Holidays.

1.3 In terms of the Public Holidays Act (Act No. 36 of 1994), the following days are regarded as Public Holidays:-

01 January
21 March
March/April
March/April
27 April
01 May
16 June
09 August
24 September
16 December
25 December
26 December / New Years Day
Human Rights Day
Good Friday
Family Day
Freedom Day
Worker's Day
Youth Day
National Women’s Day
Heritage Day
Day of Reconciliation
Christmas Day
Day of Goodwill

1.4 The employee hereby agrees to work on any Public Holiday he or she is rostered to work in accordance with the business and operational requirements of the employer.

2. Exchange of Public Holidays

2.1 In terms of section 2 (2) of the Public Holidays Act, 1994 (Act No. 36 of 1994), a public holiday is exchangeable for any other day which is fixed by agreement or agreed to between the employer and the employee.

2.2 The employee and employer hereby agree to exchange the following Public Holidays for an alternative day off:-

01 January
21 March
March/April
March/April
27 April
01 May
16 June
09 August
24 September
16 December
25 December
26 December / New Years Day
Human Rights Day
Good Friday
Family Day
Freedom Day
Worker's Day
Youth Day
National Women’s Day
Heritage Day
Day of Reconciliation
Christmas Day
Day of Goodwill / ………………………200…
………………………200…
………………………200…
………………………200…
………………………200…
………………………200…
………………………200…
………………………200…
………………………200…
………………………200…
………………………200…
………………………200…

2.3 The employee shall be remunerated for any such alternative days off as if it were a Public Holiday in terms of the Public Holidays Act, 1994.

3. Night work

3.1 In this section, "night work" means work performed after 18:00 and before 06:00 the next day.

3.2 An employer may only require or permit an employee to perform night work, if so agreed, and if-

3.2.1 the employee is compensated by the payment of an allowance, which may be a shift allowance, or by a reduction of working hours; and

3.2.2 transportation is available between the employee's place of residence and the workplace at the commencement and conclusion of the employee's shift.

3.3 Due to the business and operational requirements of the Company, employees will be required to perform night work.

3.4 The employee hereby agrees to perform night work for which night work, the employee will be compensated by an allowance of ______per month, alternatively, by a reduction of ______working hours per month.

4. Work on Sundays

4.1 An employee's day off, unless otherwise agreed, must include Sunday.

4.2 Due to the business and operational requirements of the Company, the employee hereby consents to work on Sundays.

4.3 The employee will be compensated for work on Sundays in accordance with the provisions of the Basic Conditions of Employment Act 75 of 1997. For the purposes of this Act, the employee will be deemed to occasionally / ordinarily work on a Sunday (see Regulation 3 BCEA 1A - Summary to be kept by an employer in terms of section 30)

5. Overtime

5.1 Subject to Chapter 2 of the Act, an employer may not require or permit an employee, to work overtime except in accordance with an agreement.

5.2 Due to the business and operational requirements of the company, employees may be required to work overtime.

5.3 The employee hereby agrees to work overtime in accordance with the business and operational requirements of the company.

5.4 The employee will be compensated for overtime work in accordance with the provisions of the Act, alternatively, be granted paid time off within twelve months of the employee becoming entitled to it;

5.5 The agreement concluded in terms of this section with an employee when the employee commences employment, or during the first three months of employment, lapses after one year, and may be renewed thereafter for a further period of one (1) year. The terms of this agreement lapse twelve (12) months from date of signing this Agreement.

I, the undersigned, have read and understood the contents of this agreement, and agree to the terms and conditions thereof. I am furthermore aware, that the terms and conditions of this agreement constitute material terms and conditions of my contract of employment with the Company, and any failure to comply with such terms or conditions may result in the termination of my contract of employment, whether it be on grounds of misconduct, incapacity or operational requirements of the Company. This agreement has been entered into freely and voluntarily and without duress.

Signed at ______on this the ______day of

______200

Employee(s):-

Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______/ Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______

Signed at ______on this the ______day of

______200

Employer:-

______(Pty) Ltd

______

______

______

______

For the Company, in his capacity as

______of the Company,

he being duly authorised to sign this Agreement on behalf of the Company by a resolution of the Board of Directors passed on the ______day of ______200__

Note:- The parties to the Agreement may be extended to include a Trade Union, in which the appropriate amendments must be made, and references to the Trade Union included.

If the employer party is a Close Corporation, Partnership, or Sole Proprietor, amend the reference to the word "Company" to reflect the correct juristic persona of the employer.

RENEWAL AGREEMENT IN RESPECT OF OVERTIME WORK

Agreement entered into between

…………………………………… ("the employer / company")

and

…………………………………… ("the employees")

……………………………………

……………………………………

……………………………………

……………………………………

NOW WHEREAS the Basic Conditions of Employment Act 75 of 1997 ("the Act") specifies certain terms and conditions of employment which require to be agreed between an employer and his employees, and that any agreement so reached lapses after a period of twelve (12) months, the parties have entered into an agreement whereby the employee(s) agree to work overtime for a period of twelve (12) months from date of signing this Agreement.

1. Overtime

1.1 Subject to Chapter 2 of the Act, an employer may not require or permit an employee, to work overtime except in accordance with an agreement.

1.2 Due to the business and operational requirements of the company, employees may be required to work overtime.

1.3 The employee hereby agrees to work overtime in accordance with the business and operational requirements of the company.

1.4 The employee will be compensated for overtime work in accordance with the provisions of the Act, alternatively, be granted paid time off within twelve months of the employee becoming entitled to it;

1.5 The agreement concluded in terms of this section with an employee when the employee commences employment, or during the first three months of employment, lapses after one year, and may be renewed thereafter for a further period of one (1) year. The terms of this agreement lapse twelve (12) months from date of signing this Agreement.

I, the undersigned, have read and understood the contents of this agreement, and agree to the terms and conditions thereof. I am furthermore aware, that the terms and conditions of this agreement constitute material terms and conditions of my contract of employment with the Company, and any failure to comply with such terms or conditions may result in the termination of my contract of employment, whether it be on grounds of misconduct, incapacity or operational requirements of the Company. This agreement has been entered into freely and voluntarily and without duress.

Signed at ______on this the ______day

______200

Employee(s):-

Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______/ Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______
Signature ______
Witnesses 1 ______
Witnesses 2 ______
Date of Signature ______

Signed at ______on this the ______day of

______200

Employer:-

______(Pty) Ltd

______

______

______

______

For the Company, in his capacity as

______of the Company,

he being duly authorised to sign this Agreement

on behalf of the Company by a resolution of the Board of Directors passed on the ______day of ______200__

Note:- The parties to the Agreement may be extended to include a Trade Union, in which the appropriate amendments must be made, and references to the Trade Union included.

Micma & Associates

[1] GG 14 March 2003, Notice 356

[2] s 10 of Act 75 of 1997

[3] s10(5) of Act 75 of 1997

[4] s 35 of Act 75 of 1997

[5] s 35(3) of Act 75 of 1997

[6] s 10(2) of Act 75 of 1997

[7] see footnote 1 above

[8] see footnote 1 above